Core Exploration Ltd (ASX:CXO) has had its application to participate in the Junior Minerals Exploration Incentive scheme (JMEI) accepted by the Australian Taxation Office (ATO).
In accordance with Federal Government legislation, the company has received an allocation of up to $750,000, which can be distributed to eligible shareholders.
Refundable tax credits for shareholders
Core has established one of Australia’s highest-grade lithium resources at the Grants deposit within the Finniss Lithium Project near Darwin Port, Australia’s closest port to China.
READ: Core Exploration has Chinese backing to transform into lithium producer
The JMEI scheme enables eligible exploration companies to create refundable tax credits to distribute to eligible shareholders by forgoing a portion of their carried forward tax losses.
Distribution yet to be determined
The precise distribution per share will be determined after June 30, 2018, and will be impacted by the amount raised under the group’s recent share purchase plan.
The JMEI credits will apply to the fiscal 2018 tax year and can be issued by Core after lodgement of its June 30, 2018 tax return.
The record date to determine eligibility for JMEI credits is Monday, April 23, 2018.